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Ergo Co acquired an item of plant on 1 July 20X5 at a cost of $250,000. Ergo Co depreciates its plant at a rate of 20% on a reducing balance basis. As at 30 June 20X6, the manufacturer still makes the same item of plant and its current price is $300,000.
Required
What is the correct carrying amount to be shown in the statement of financial position of Ergo Co as at 30 June 20X6 under historical cost and current cost?
O Historical cost: $200,000; Current cost: $300,000
Historical cost: $200,000; Current cost: $240,000
Historical cost: $250,000; Current cost: $300,000
O Historical cost: $250,000; Current cost $240,000
Sagot :
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